JSE opens slightly higher as global risk- off eases
The local bourse gradually recovers Thursday’s losses as global market sentiment improves
The JSE opened slightly higher on Friday as risk aversion eased on news that the ban on Huawei may be resolved within the framework of the US-China trade deal.
US President Donald Trump on Thursday said, if the US and China were to reach a trade deal, Chinese telecom giant Huawei would likely be included in the agreement, Reuters reported.
The Trump administration this week temporarily reversed its ban on Huawei by granting US companies a 90 day licence to continue business with Huawei.
The trade conflict between the two economic superpowers continues to drive sentiment in the global markets as it gradually filters into the technology sector after reports that the US might impose Huawei-like sanctions on Chinese video surveillance company Hikvision.
The Asian markets were mixed as the Shanghai Composite was flat and the Hong Kong Hang Seng recovering Thursday losses, earlier gaining 0.4%. The Japanese Nikkei had fallen 0.62%.
In Europe, the FTSE 100 was up 0.56%, CAC 40 up 0.64% and the DAX 30 0.76%, as the parliamentary elections for the EU continue.
At 10am, the all share gained 0.46% to 54,522.7 points and the top 40 rose 0.45%.
Banks rose 0.68%, resources 0.54%, financials 0.54% and general retailers 0.82%.
Naspers gained 0.55% to R3,143.10.
Old Mutual fell 1.06% to R21.47, after the financial services company on Friday suspended CEO Peter Moyo with immediate effect. Old Mutual cited “material breakdown in trust and confidence” between Moyo and the board.
Gold miners fell 0.84% with Harmony down 2.24% to R23.56, Anglogold Ashanti 1.04% to R169.55, Goldfields 0.45% to R55.26 and Sibanye 0.41% to R12.00.
Standard & Poor’s Global Ratings (S&P) is scheduled to provide an update on SA’s sovereign credit rating. S&P lowered the country’s sovereign debt to below investment grade in 2017 after president Jacob Zuma’s unexpected cabinet reshuffle.